Nuveen Real Estate [Asia]

Nuveen Real Estate is one of the largest investment managers in the world with $130 billion of assets under management.

Managing a suite of funds and mandates, across both public and private investments, and spanning both debt and equity across diverse geographies and investment styles, we provide access to every aspect of real estate investing.

With over 80 years of real estate investing experience and more than 600 employees* located across over 25 cities throughout the United States, Europe and Asia Pacific, the platform offers unparalleled geographic reach, which is married with deep sector expertise.

Sector forecasts

Industrial: The long-term outlook for regional logistics real estate is underpinned by several structural tailwinds which are mainly underscored by robust domestic demand. Despite the current soft global trade environment, the near-term risks to sentiment and leasing demand should be mitigated by limited institutional grade and modern facilities. Economies with strong internal demand and higher e-commerce penetration are expected to better withstand the near-term export-related headwinds: South Korea, Japan, Australia and China, for example. The exponential growth of the e-commerce sector should continue to underpin the performance of logistics assets. Asia Pacific has the largest share of online sales globally and is still expanding at a faster pace than any other region in the world.

Office: A dislocation in performance across the office market should start to take shape in the coming months, as divergence in fundamentals shines through on the uncertain economic and political landscape. An uncertain business outlook, from the trade war and weak domestic demand, has started to drag on capital spending. While overall labour market conditions remain strong, the balance of risk to employment growth is down due to the uncertain outlook ahead. Most regional economies are expected to grow at below trend in 2019, with a subdued outlook in 2020 expected, even with support from monetary and fiscal stimulus. Singapore, Sydney and Melbourne office markets are likely to see relatively resilient rental growth from more subdued supply headwinds.

Residential: Demand for residential investment has started to show signs of slowing across key gateway cities. The pullback in pricing is evident across key mainland Chinese cities, as a slowing economy has started to negatively impact sentiment. Even in Tokyo, a star performer in recent years, a rising bid-ask spread reflects the less certain macro outlook after many years of price increases. However, supportive financing conditions will help underpin pricing. Volumes have started to creep higher in key Australian cities even though sentiment remains somewhat uncertain. The months-long protest in Hong Kong will likely have a longer-term negative impact on the residential market, as social instability impacts on business sentiment, the labour market and foreign appetite.

Retail: Asia Pacific remains the epicentre of rising middle classes and consumption in the long -term, however the near-term hit to consumer sentiment from a softer growth outlook has started to dampen the retail trade across many regional markets, not to mention the headwinds from rapidly increasing e-commerce sales. The decline in footfall and weakening income has had a visible impact on retail property valuation and will continue to exert upward pressure on cap rates in the medium-term. One bright spot in this generally weak retail market sentiment is in the discounted luxury outlet mall segment in China: while high street luxury brands are hurting from slower growth and rapidly changing consumer tastes, the emerging middle class continues to be attracted by the experiential luxury shopping experience in an out-of-town location.

Investment principles & strategy

A client-focused culture is at the core of who we are and what we believe our clients expect from us.

We take a stable, risk-aware investment approach to our business, which places our clients and investment teams at the heart of our process. Our fund management teams work closely with our clients to deliver investment performance that meets their objectives. The teams operate within a defined investment process with established risk controls, accompanied by investment committee oversight.

Our tomorrow’s world investment philosophy incorporates strategic insights on megatrends throughout every stage of the investment process, looking beyond market cycles to assess how structural trends can best inform long-term real estate investments. Environmental and social governance is embedded into everything we do for the enduring benefit of clients and society.

Strategic corporate development

We work closely with our clients to develop long-term strategic relationships, to understand their goals and meet their requirements. To ensure we provide each investor with a tailored solution, made up of a range of products and strategies, we have developed our range of solutions to offer the resilient, enhanced and debt series:

Our resilient series is designed for investors who are focused on diversification, income and long-term capital growth. Our strategies focus on investing in high-quality assets in leading cities that are well positioned in terms of long-term structural trends, including demographic change, urbanisation and technology.

Our enhanced series applies strategies that work within market cycles, use a more active asset management and repositioning approach, and/or invest in emerging sectors and locations. These strategies are designed for investors that are looking for an enhanced level of capital growth.

Our debt series is designed to provide investors with access to secure, income-focused returns. Our strategies may suit cautious investors seeking attractive levels of income with a measure of downside protection against short-term capital cycles.

Performance verification

Nuveen Real Estate has its own performance analysis team dedicated to measuring and analysing property portfolio and fund performance.

COMPLIANCE STATEMENT // All information is as at 30 June 2019 and sourced to Nuveen Real Estate. This profile is intended solely for the use of professionals and is not for general public distribution. The information contained herein was up to date at the time of producing and is subject to change. This information is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity. This document is not directed at or intended for any person (or entity) who is citizen or resident of (or located or established in) any jurisdiction where its use would be contrary to applicable law or regulation [or would subject the issuing companies or products to any registration or licencing requirements] Nuveen Real Estate is a name under which Nuveen Real Estate Management Limited provides investment products and services. Nuveen Real Estate is an investment affiliate of Nuveen, LLC (“Nuveen”). Issued by Nuveen Real Estate Management Limited (reg. no. 2137726), (incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3BN) which is authorised and regulated by the Financial Conduct Authority to provide investment products and services.

As the initial epicentre of the coronavirus, many lessons can be learnt from China: For example, the importance a swift government response (resting on lessons learnt during the SARS outbreak in 2002-2003) with total or partial lockdowns across many cities alongside other mobility restrictions and intensified health screening.

Louise Kavanagh, Managing Director, Asia Pacific, sits down with Asset T.V. to discuss the main geopolitical risks currently shaping Asia, how the trade war is affecting investor sentiment in the region and why investors are currently favouring a defensive position.

The outlook heading into 2020 Asia Pacific’s is showing clearer signs of improvement after the significant headwinds for Asia-Pacific’s growth landscape in 2019 – particularly from the United States-China trade tensions which softened global business sentiment and trade.

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Second acquisition by Nuveen Real Estate’s Asia Pacific cities platform First acquisition in Korea for Nuveen Real Estate 100% interest in a last-mile, brand new logistics facility in the Greater Seoul area Fully let to Coupang and Emart 24, among the largest market players in their ...